BS7- Place Flashcards
Outline what is meant by place
where your product or service will be sold
Explain the role of the wholesaler
The job of them in the distribution chain is to break bulk. This means they buy in bulk and break down into smaller units
Explain two reasons of the business may use a wholesaler
They may not have the storage to store mass products
It is cheaper to buy from wholesalers
Identify the two intermediaries involved in the channel of distribution
Retailer
Agents
Outline one reason the channels three has become increasingly popular in recent years
Chanel three is producer to consumer. It has become increasingly popular as more people are able to order off websites which come straight from the producer
Explain one reason that some supermarkets have stopped using a wholesaler
A lot of supermarkets have there own storage facilities now which costs them less than buying form wholesalers
Outline the difference between online and digital distribution
Online- is sold online and then a physical item or service received
Digital- sold online and receive a non tangible item, e.g a music download
Identify and explain two benefits of digital distribution to the customer
They don’t have to wait for delivery time, this means that they are able to get the product instantly
Digital copy’s are often cheaper than physical copy’s therefore saving the customer money
Explain one reason that digital distribution may cause problems for retailers
There are a lot of illegal sites that give the same content for free that are very hard to compete with
Explain what is meant by physical distribution
It refers to the physical method of distribution which a business uses. For UK Academy, road transport is the most common method of moving goods from one place to another.
Outline three factors that a business may need to consider before choosing a physical method of distribution
Where the product is being mover too and from
If it is a perishable good
The price of the product
